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Company A has total sales of $500,000, total variable costs of $300,000, and fixed costs of 150,000. Company B has total sales of $500,000, total
Company A has total sales of $500,000, total variable costs of $300,000, and fixed costs of 150,000. Company B has total sales of $500,000, total variable costs of $50,000, and fixed costs of $400,000. Which of the following is true? 21. A) Company A is more leveraged with an operating leverage factor of 4 B Company 8 is more leveraged with an operating leverage factor of 10 C) Company A is more leveraged with an operating leverage factor of 3 D) Company 8 is more leveraged with an operating leverage factor of 9 E) None of the above
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